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Economics of Public Antibiotics Development
Issuing monetary incentives, such as market entry rewards, to stimulate private firm engagement has been championed as a solution to our urgent need for new antibiotics, but we ask whether it is economically rational to simply take public ownership of antibiotics development instead. We show that th...
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Formato: | Online Artículo Texto |
Lenguaje: | English |
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Frontiers Media S.A.
2020
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Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7253662/ https://www.ncbi.nlm.nih.gov/pubmed/32509716 http://dx.doi.org/10.3389/fpubh.2020.00161 |
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author | Okhravi, Christopher |
author_facet | Okhravi, Christopher |
author_sort | Okhravi, Christopher |
collection | PubMed |
description | Issuing monetary incentives, such as market entry rewards, to stimulate private firm engagement has been championed as a solution to our urgent need for new antibiotics, but we ask whether it is economically rational to simply take public ownership of antibiotics development instead. We show that the cost of indirectly funding antibiotics development through late phase policy interventions, such as market entry rewards may actually be higher than simple direct funding. This result is reached by running a Monte Carlo simulation comparing the cost of increasing the ratio of investment go-decisions at the outset of pre-clinical development, to the cost of directly funding the same antibiotics under various levels of operational inefficiency. We simulate costs for hypothetical antibiotics targeting six different indications, using data from previous studies. We conclude that while indirect funding may be necessary for the current pipeline we may want to prefer direct funding as a cost effective long-term solution for future antibiotics. |
format | Online Article Text |
id | pubmed-7253662 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2020 |
publisher | Frontiers Media S.A. |
record_format | MEDLINE/PubMed |
spelling | pubmed-72536622020-06-05 Economics of Public Antibiotics Development Okhravi, Christopher Front Public Health Public Health Issuing monetary incentives, such as market entry rewards, to stimulate private firm engagement has been championed as a solution to our urgent need for new antibiotics, but we ask whether it is economically rational to simply take public ownership of antibiotics development instead. We show that the cost of indirectly funding antibiotics development through late phase policy interventions, such as market entry rewards may actually be higher than simple direct funding. This result is reached by running a Monte Carlo simulation comparing the cost of increasing the ratio of investment go-decisions at the outset of pre-clinical development, to the cost of directly funding the same antibiotics under various levels of operational inefficiency. We simulate costs for hypothetical antibiotics targeting six different indications, using data from previous studies. We conclude that while indirect funding may be necessary for the current pipeline we may want to prefer direct funding as a cost effective long-term solution for future antibiotics. Frontiers Media S.A. 2020-05-21 /pmc/articles/PMC7253662/ /pubmed/32509716 http://dx.doi.org/10.3389/fpubh.2020.00161 Text en Copyright © 2020 Okhravi. http://creativecommons.org/licenses/by/4.0/ This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms. |
spellingShingle | Public Health Okhravi, Christopher Economics of Public Antibiotics Development |
title | Economics of Public Antibiotics Development |
title_full | Economics of Public Antibiotics Development |
title_fullStr | Economics of Public Antibiotics Development |
title_full_unstemmed | Economics of Public Antibiotics Development |
title_short | Economics of Public Antibiotics Development |
title_sort | economics of public antibiotics development |
topic | Public Health |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7253662/ https://www.ncbi.nlm.nih.gov/pubmed/32509716 http://dx.doi.org/10.3389/fpubh.2020.00161 |
work_keys_str_mv | AT okhravichristopher economicsofpublicantibioticsdevelopment |